Kotak Mahindra Bank recommends two internal candidates for CEO, sources say

Mumbai: India's Kotak Mahindra Bank has proposed two internal candidates, Anup Saha and Paritosh Kashyap, to replace Chief Executive Ashok Vaswani when his tenure ends next year, according to sources familiar with the matter. The private lender, India's fourth-largest private bank, has submitted the names of executive directors Saha and Kashyap to the Reserve Bank of India for approval.

This move marks the initial step in selecting a successor for Vaswani, who announced he would not seek reappointment on December 31, 2026, citing personal reasons. The appointment will be closely monitored, as under Vaswani's leadership, Kotak Mahindra Bank aimed to become India's third-largest private lender by after-tax profit.

Regulatory requirements stipulate that banks must recommend a minimum of two potential CEOs, with the Reserve Bank having the discretion to approve one or seek alternatives if deemed unsuitable. While it remains unclear which name is the bank's preferred choice, Kotak Mahindra joins other banks in sourcing capital through dollar debt before the RBI window closes.

Current details about the candidates, Saha and Kashyap, were not available to Reuters for comment. Vaswani, a former Barclays and Citigroup executive, assumed the CEO role on January 1, 2024, following the departure of the bank's founder, Uday Kotak, after over two decades. Notably, Kotak Mahindra Bank's family remains the largest shareholder, holding 26% of the company.

Saha, who joined Kotak this year after leading non-bank lender Bajaj Finance, oversees the retail banking business at Kotak. Kashyap, a long-standing Kotak employee, manages the wholesale banking operations. Kotak Mahindra Bank's shares have surged by 5% over the past five trading sessions.